Financial Statement Analysis for Afterpay Limited

Financial statement
analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Industry analysis.....................................................................................................................3
Company analysis...................................................................................................................3
Financial analysis...................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial statement analysis is one of the most important aspects as it helps the company
to analyse and evaluate its long term financial position by reviewing the overall position so that it
can help the stakeholders that are directly as well as indirectly associated by the company to see
a clear picture of the operation of the firm (Akhmedjanov, 2019). The report covers all the
detailed evaluation of the company that is Afterpay limited and thus a precise review and
calculation of all the factors are done so that it can help in the overall growth and development of
the firm in the long run
MAIN BODY
Industry analysis
Afterpay Limited is an Australian company which is operating their business in New
Zealand, Canada, United States, Australia, and United Kingdom. As per the economic data, it
can be said that they have delivered solid results in 2021 as the underlying sales of the company
is $22.4b which is up to 102% on financial year 2020 (Afterpay Limited Annual Report, FY21).
They are ranging among the top 20 companies in Australia with 16.2 million active users which
are up to 635 percent more than the FY20. As the company deals in providing financial services
to its clients it is one of the most profitable firms in the industry as of now. The core competitors
of their companies are Sezzle, it is the publicly traded company which is offering alternative
payment platforms with interest free instalment plans. They are having 7.8 million active users.
Another main player in the market is Klarna, it is the company which offering the financial
solutions to the users and also save time and money in the administration. The company is
founded in 2005 and their one-time card payments make them different from other similar
companies.
Company analysis
Afterpay company is established by Molnar and his neighbour, Eisen in 2014 and in 2016
the company is listed on the Australian Securities Exchange. Afterwards, Matrix Partners, who is
the American venture capital, announced its investment in Afterpay to supports its entry into US
retail market. Afterpay is known for their pay later service which helps the customer in-store in
terms of online purchase and pay later with four equal fortnightly repayments which are interest
free. The client pays the full amount of money within a few days and does have a less a